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Author Question: A toy manufacturer following the hedging principle will generally finance seasonal inventory ... (Read 29 times)

beccaep

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on: Jul 10, 2018
A toy manufacturer following the hedging principle will generally finance seasonal inventory
  build-up prior to the Christmas season with
 
  A) selling equipment.
  B) long-term bonds since this is a recurring financing need.
  C) trade credit.
  D) common equity to avoid interest on a recurring annual need.

Question 2

Bellington, Inc is considering the purchase of new, sophisticated machinery for a special
  three-year project.
 
  The machinery requires a special lubricating oil that probably will never be
  used, but must be available at all times should the machine break down. Bellington purchases
  2,000 of lubricating oil to keep on hand just in case it is needed. At the end of the three-year
  project, it is expected the lubricating oil can be sold back to the distributor for 2,000. Which of the
  following statements is MOST correct?
  A) The 2,000 represents an additional investment in working capital that should be included in
  the capital budgeting analysis.
  B) The 2,000 for the lubricating oil should be excluded from the analysis because it is recovered
  at the end of three years, so the final cost is zero.
  C) The 2,000 for lubricating oil is simply an accounting entry and does not represent a real cash
  flow.
  D) The lubricating oil is a sunk cost that should be excluded from the analysis.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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tmlewis4706

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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beccaep

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

shewald78

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Reply 3 on: Yesterday
:D TYSM

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